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US open: Stocks mostly higher, lifted by Citigroup results

US stocks were mostly higher, boosted by better-than-expected results from Citigroup.

Citigroup's shares surged after the US bank reported second quarter profit that beat analysts' estimates. The company also agreed to pay $7bn in fines and consumer relief to resolve government claims that it misled investors about the quality of mortgage-backed bonds sold before the 2008 financial crisis.

With no major US economic data releases due today, the focus is firmly on company news, ahead of Federal Reserve Chair Janet Yellen's testimony to the Senate Banking Committee tomorrow and to the House Committee on Financial Services the following day.

"Until now the Fed has refused to adopt a more hawkish tone despite the significant improvement in economic performance in the second quarter but that can only go on for so long," said Craig Erlam, analyst at Alpari UK.

"Eventually I expect Yellen to hint at a first rate hike in the first quarter of next year and when she does, investors may well freak out. That could well bring the end of these daily records being made and be the start of the next correction."

Fed policymakers last month agreed to end the bond buying programme in October provided the economy improves, minutes released from the meeting last week showed.

Following a slow start to the week, the calendar will pick up with the release of data on retail sales, manufacturing, labour and inflation.

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